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India’s Look/Act East Policy
Presented by:- Group-
6
Economics 14/433
Economics 14/438
Economics 14/459
Economics 14/470
 First formulated under Prime Minister P.V.Narasimha
Rao in the 1990’s.
 Technically it covers all Asian Pacific Region. But, in
practical terms, it is confined only with South East
Asian regions.
 This policy is non-written policy of India
government.
 Moreh in Manipur is seen as the key to India’s “Look
East” policy.
 To counter china.
 To increase economic relations with Southeast Asia
by building economic, institutional and defence links
with the region.
 To forge social, economic and cultural relations with
the countries of East Asia.
 To renew political contacts and understanding with
ASEAN member states.
 Development of north east India.
 To build the Asian Highway and Asian Railway Link
and the natural gas pipeline.
 Kaladan Multi-Modal Transit Transport Facility
aimed at establishing connectivity between Indian
ports and Sittwe port in Myanmar.
 Road in Mizoram is envisaged as providing an
alternate trade route to the northeast.
 The Mekong-Ganga Cooperation and Kunming
Initiative have been undertaken by India to boost
cooperation in tourism, culture, transportation and
education with tha ASEAN.
 Mekong has the potential for direct flights between
Guwahati- Ho Chi Minh City-Imphal-Hanoi.
 The India–Myanmar–Thailand Trilateral Highway
Project and its extension to Laos and Cambodia.
 PM Narendra Modi unveiled India’s ‘Act East’ Policy
at the ASEAN Summit in November 2014.
 It is an upgradation of the Look East Policy.
 More action-oriented policy towards ASEAN
specifically and East Asia in general.
 Establishing a special purpose vehicle for project
financing, building information highways, and
inviting ASEAN countries to participate in India’s
ongoing economic transformation.
India’s Strength
 Computer Software (Information Technology).
 Pharmaceuticals.
 Huge Potential Demand and marketing.
East Asia’s Strength
 Electronic Equipment.
 Heavy Engineering.
 Product Development.
 ASEAN is at the core of our Act East
 Indo-ASEAN trade accounts for 10% of all Indian
trade
 India-ASEAN trade volume = $ 70 billion in 2012,
$79.6 billion as of 2014. Hope of reaching $100
billion by 2015 and double that volume by 2022.
 India–ASEAN have signed FTA in goods and later
extended it to include services.
It’s Dimension
 In 2009, an Indo-ASEAN TIG (Trade in Goods)
Agreement was signed.
 India has also formally signed the FTA on Services
and Investment in 2014, with ASEAN countries.
 India's exports stand at $334.4 million, while it
imports goods worth over $1 billion from Myanmar.
 Share of ASEAN’s total trade, India counts for only
3%. China's accounts 11% of all ASEAN trade.
2010
0.00%
0.01%
0.02%
0.03%
0.04%
0.05%
0.06%
0.07%
0.08%
0.09%
India exports to ASEAN 2010
0%
5%
10%
15%
20%
25%
30%
India imports from ASEAN 2010
Indian exports to ASEAN:
 In 1992, India exports to ASEAN countries account
for 1369.34 million Dollars (0.69% of the total
ASEAN imports).
 In 2009, Indian exports accounts for 17898.83
million Dollars (2.50%).
Indian imports from ASEAN:
 In 1992, India imports from ASEAN exports account
for 1168.32 million Dollars (0.83 % of the total
ASEAN exports).
 In 2009, India imports from ASEAN exports account
for 23968.10 million Dollars (3.03 % of the total
ASEAN exports).
Agreements signed and implemented:
Preferential Trade Agreements:
• Asia Pacific Trade Agreement (1975)
• South Asian Preferential Trade Agreement (SAPTA
1993).
Free Trade Agreements:
• India-Nepal-One way FTA (1991/2002).
• India-Bhutan (1995/2006).
• India-Singapore CECA (2005).
• South Asia Free Trade Area (SAFTA) (FTA in Goods-
2004 – implemented from 1.1.2006).
• India-Thailand FTA & India-ASEAN FTA.
 Issues of Infrastructure.
 Lack of Local Support.
 Crisis of Insurgency.
 States’ Incapacities.
 Limited Economic Integration.
 Inefficient bureaucratic processes.
 Build up the population skill base.
 Improve education system.
 Roads needs to be maintained.
 Counter and eliminating insurgency.
 Border areas have to be made safe.
 Inner Line Regulation of 1873 and the Restricted
Area Permit (RAP) required for foreigners must be
revoked.
 Development of infrastructure in the North Eastern
region.
 Increase in FDI.
 Social Welfare beneficiaries.
 Harmonious, peaceful and prosperity.
 More integration with the world economy.
 Fill the void caused by the collapse of the Soviet
Union.
 Help the country in overcoming its isolation from a
world-wide phenomenon of joining regionalism.
 As this policy is on going process, actual benefits and
loss cannot be identified.
 North Eastern parts of India will play a crucial role.
 The main way of trade will be water.
 Exports of the country will Increase.
 Open up the economy towards east will bring
economic, political and social benefits to the country.
Act East Policy of India

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Act East Policy of India

  • 1. India’s Look/Act East Policy Presented by:- Group- 6 Economics 14/433 Economics 14/438 Economics 14/459 Economics 14/470
  • 2.  First formulated under Prime Minister P.V.Narasimha Rao in the 1990’s.  Technically it covers all Asian Pacific Region. But, in practical terms, it is confined only with South East Asian regions.  This policy is non-written policy of India government.  Moreh in Manipur is seen as the key to India’s “Look East” policy.
  • 3.  To counter china.  To increase economic relations with Southeast Asia by building economic, institutional and defence links with the region.  To forge social, economic and cultural relations with the countries of East Asia.  To renew political contacts and understanding with ASEAN member states.  Development of north east India.
  • 4.  To build the Asian Highway and Asian Railway Link and the natural gas pipeline.  Kaladan Multi-Modal Transit Transport Facility aimed at establishing connectivity between Indian ports and Sittwe port in Myanmar.  Road in Mizoram is envisaged as providing an alternate trade route to the northeast.
  • 5.  The Mekong-Ganga Cooperation and Kunming Initiative have been undertaken by India to boost cooperation in tourism, culture, transportation and education with tha ASEAN.  Mekong has the potential for direct flights between Guwahati- Ho Chi Minh City-Imphal-Hanoi.  The India–Myanmar–Thailand Trilateral Highway Project and its extension to Laos and Cambodia.
  • 6.  PM Narendra Modi unveiled India’s ‘Act East’ Policy at the ASEAN Summit in November 2014.  It is an upgradation of the Look East Policy.  More action-oriented policy towards ASEAN specifically and East Asia in general.  Establishing a special purpose vehicle for project financing, building information highways, and inviting ASEAN countries to participate in India’s ongoing economic transformation.
  • 7. India’s Strength  Computer Software (Information Technology).  Pharmaceuticals.  Huge Potential Demand and marketing. East Asia’s Strength  Electronic Equipment.  Heavy Engineering.  Product Development.
  • 8.  ASEAN is at the core of our Act East  Indo-ASEAN trade accounts for 10% of all Indian trade  India-ASEAN trade volume = $ 70 billion in 2012, $79.6 billion as of 2014. Hope of reaching $100 billion by 2015 and double that volume by 2022.  India–ASEAN have signed FTA in goods and later extended it to include services. It’s Dimension
  • 9.  In 2009, an Indo-ASEAN TIG (Trade in Goods) Agreement was signed.  India has also formally signed the FTA on Services and Investment in 2014, with ASEAN countries.  India's exports stand at $334.4 million, while it imports goods worth over $1 billion from Myanmar.  Share of ASEAN’s total trade, India counts for only 3%. China's accounts 11% of all ASEAN trade.
  • 10. 2010
  • 13. Indian exports to ASEAN:  In 1992, India exports to ASEAN countries account for 1369.34 million Dollars (0.69% of the total ASEAN imports).  In 2009, Indian exports accounts for 17898.83 million Dollars (2.50%). Indian imports from ASEAN:  In 1992, India imports from ASEAN exports account for 1168.32 million Dollars (0.83 % of the total ASEAN exports).  In 2009, India imports from ASEAN exports account for 23968.10 million Dollars (3.03 % of the total ASEAN exports).
  • 14. Agreements signed and implemented: Preferential Trade Agreements: • Asia Pacific Trade Agreement (1975) • South Asian Preferential Trade Agreement (SAPTA 1993). Free Trade Agreements: • India-Nepal-One way FTA (1991/2002). • India-Bhutan (1995/2006). • India-Singapore CECA (2005). • South Asia Free Trade Area (SAFTA) (FTA in Goods- 2004 – implemented from 1.1.2006). • India-Thailand FTA & India-ASEAN FTA.
  • 15.  Issues of Infrastructure.  Lack of Local Support.  Crisis of Insurgency.  States’ Incapacities.  Limited Economic Integration.  Inefficient bureaucratic processes.
  • 16.  Build up the population skill base.  Improve education system.  Roads needs to be maintained.  Counter and eliminating insurgency.  Border areas have to be made safe.  Inner Line Regulation of 1873 and the Restricted Area Permit (RAP) required for foreigners must be revoked.
  • 17.  Development of infrastructure in the North Eastern region.  Increase in FDI.  Social Welfare beneficiaries.  Harmonious, peaceful and prosperity.  More integration with the world economy.  Fill the void caused by the collapse of the Soviet Union.  Help the country in overcoming its isolation from a world-wide phenomenon of joining regionalism.
  • 18.  As this policy is on going process, actual benefits and loss cannot be identified.  North Eastern parts of India will play a crucial role.  The main way of trade will be water.  Exports of the country will Increase.  Open up the economy towards east will bring economic, political and social benefits to the country.